You’ve built this business from the ground up. You’ve endured the sleepless nights, the payroll stress, and the relentless pressure to perform. Now, you’re thinking about the next chapter. But is the business actually ready for a new owner, or are you just ready for a long holiday?

This isn't a trivial distinction; it’s the difference between a life-changing exit and a disappointing fire sale. An exit strategy isn't a document you dust off when an offer lands in your inbox. It’s a deliberate, multi-year process of building a valuable, transferable asset. This checklist is your starting point.

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Are You Ready to Sell? Or Just Ready to Stop?

This is the most important question a founder can ask themselves, and one that most get wrong. Confusing personal fatigue with genuine business exit readiness is the fastest way to destroy value.

The critical difference between personal burnout and business readiness

Burnout makes you want to escape. Readiness makes you ready to command a premium price.

• Burnout-driven exits are reactive. They happen from a position of weakness. You’re tired, you’re desperate for a break, and you become less discerning about the deal terms and the final price. You’re selling your problem.
• Readiness-driven exits are proactive. They happen from a position of maximum strength. The business is performing well, systems are running smoothly without you, and you can walk away from a bad deal because you don’t need to sell. You’re selling a valuable, turnkey opportunity.

Recognising where you sit on this spectrum is the first step towards a successful transaction.

Why most exits are rushed, chaotic, and undervalued

In Australia, the majority of SME sales are unplanned. They’re triggered by an unexpected event: a health crisis, a partnership dispute, divorce, or a surprisingly aggressive unsolicited offer.

The founder is immediately on the back foot. Financials are a mess, key contracts are verbal, and customer relationships live entirely in the founder’s head. The subsequent due diligence process becomes a chaotic scramble to find documents and justify numbers, exposing every weakness in the business. The buyer smells blood in the water, and the valuation plummets. This isn't bad luck; it's a failure to prepare.

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The 21-Step Readiness Scorecard: A High-Level Overview

Getting a business "sale-ready" isn't a mystery. It's a process. Our 21-step methodology views your business through the sceptical eyes of a potential acquirer, systematically de-risking the asset and maximising its value. Here’s a glimpse into the core pillars.

Assessing Financial Health: Beyond the P&L

A buyer doesn't just want to see profit; they want to see quality and predictability of earnings. This means having at least three years of clean, verifiable financial statements. We’re talking about more than just your annual tax return. It’s about professional bookkeeping, clear separation of personal and business expenses, and a well-documented list of "add-backs" or normalised earnings that a buyer's accountant can sign off on without a fight.

Auditing Operational Strength: Are your systems documented or in your head?

Can you take a four-week holiday without your phone ringing off the hook? If the answer is no, your business isn't ready. A buyer is purchasing a system, not your job. Exit readiness demands documented standard operating procedures (SOPs) for every key function—from sales and marketing to HR and fulfilment. If the operational manual for your business is your brain, you don't have a transferable asset.

Evaluating Growth Strategy: Is the future roadmap clear and believable?

A buyer is paying for future cash flow, not just past performance. You need a compelling and believable growth story. This isn't a vague dream; it’s a documented strategy. Where will the growth come from? New markets? New products? Increased customer lifetime value? It needs to be supported by evidence—market analysis, a strong sales pipeline, and a low concentration of revenue from a handful of clients.

Gauging Founder Dependence: The single biggest valuation killer

This is the acid test. If your name is synonymous with the business, you have a major problem. Key Person Risk is a red flag that screams "discount!" to an acquirer. If all major client relationships, supplier negotiations, and strategic decisions depend on you, the business's value is fundamentally tied to your continued involvement. The goal is to build a business that thrives, not just survives, without you.

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The 5 Red Flags That Instantly Lower Your Business Value

During due diligence, buyers are paid to find problems. Our work with hundreds of founders has shown us the same preventable mistakes come up time and again. Here are five of the most common valuation killers.

1. Messy Financials & Vague Add-Backs: Your bookkeeper is your best friend. Mixing personal expenses, running family cars through the company, or presenting aggressive, unsubstantiated add-backs will instantly destroy trust and derail a deal.
2. High Customer Concentration: If more than 20% of your revenue comes from a single client, you don't have a stable business; you have a fragile one. Diversifying your customer base is non-negotiable for maximising value.
3. Informal Contracts & Undocumented IP: Handshake deals with key employees, suppliers, or contractors are worthless to a buyer. Ensure all employment agreements, client contracts, and intellectual property registrations are formal, current, and stored securely.
4. A "Mushroom" Management Team: If you keep your leadership team in the dark about the company's financial performance and strategy, who will a buyer trust to run the business post-sale? An empowered and informed management team provides critical continuity.
5. No Defensible Competitive Advantage: What makes you different and difficult to copy? If your only advantage is "good service" or "we try harder," you have no real moat. A buyer wants to see a unique market position, proprietary technology, or a strong brand that can defend against competition.

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Get Your Score: The First Step to Owning Your Exit

Knowing is half the battle. You can't fix what you don't measure. Stop guessing about your company's strengths and weaknesses and start building a strategic plan based on data.

Your exit will be the most significant financial event of your life. Don't leave it to chance. The first step to taking control is understanding exactly where you stand today. Our Exit Readiness Scorecard is a confidential, 15-minute diagnostic tool designed to do just that. It assesses your business against the 21 critical factors that buyers scrutinise, giving you an instant, personalised score and a clear picture of your readiness.

This isn't just another download. It's the beginning of a deliberate strategy to own your exit on your terms.